The concept of the Limited Liability Partnership (LLP) was introduced in India in 2008. An LLP has the characteristics of both the partnership firm and company. The Limited liability Partnership Act, 2008 regulates the LLP in India. Minimum two partners are required to incorporate an LLP. However, there is no upper limit on the maximum number of partners of an LLP.

Among the partners, there should be a minimum of two designated partners who shall be individuals, and at least one of them should be resident in India. The rights and duties of designated partners are governed by the LLP agreement. They are directly responsible for the compliance of all the provisions of the LLP Act, 2008 and provisions specified in the LLP agreement.

• • Features of LLP
• • Advantages Of LLP
• • Disadvantages Of LLP
• • LLP Registration Process

• • Step 1: Obtain Digital Signature Certificate (DSC)
• • Step 2: Apply for Director Identification Number (DIN)
• • Step 3: Reservation of Name
• • Step 4: Incorporation of LLP
• • Step 5: File Limited Liability Partnership (LLP) Agreement

Features of LLP

• • It has a separate legal entity just like companies.
• • The liability of each partner is limited to the contribution made by the partner.
• • The cost of forming an LLP is low.
• • Less compliance and regulations.
• • No requirement of minimum capital contribution.



The minimum number of partners to incorporate an LLP is 2. There is no upper limit on the maximum number of partners of LLP. Among the partners, there should be a minimum of two designated partners who shall be individuals, and at least one of them should be resident in India.
The rights and duties of designated partners are governed by the LLP agreement. They are directly responsible for the compliance of all the provisions of the LLP Act 2008 and provisions specified in the LLP agreement.
If you want to start your business with a Limited Liability Partnership, then you must get it registered under the Limited liability Partnership Act, 2008.

Form name	Purpose of the form
RUN – LLP (Reserve Unique Name-Limited Liability Partnership)	Form for reserving a name for the LLP
FiLLiP	Form for incorporation of LLP
Form 5	Notice for change of name
Form 17	Application and statement for the conversion of a firm into LLP
Form 18	Application and Statement for conversion of a private company/unlisted public company into LLP

Advantages Of LLP Separate legal entity

An LLP has a separate legal entity, just like companies. The LLP is distinct from its partners. An LLP can sue and be sued in its own name. The contracts are signed in the name of the LLP, which helps to gain the trust of various stakeholders and gives the customers and suppliers a sense of confidence in the business.

Limited liability of the partners

The partners of the LLP have limited liability. The liability of the partners is limited to the contributions made by them. This means that they are liable to pay only the amount of contributions made by them and are not personally liable for any loss in the business. If an LLP becomes insolvent at the time of winding up, only the LLP assets are liable for clearing its debts. The partners have no personal liabilities, and thus they are free to operate as credible businessmen.

Low cost and less compliance

The cost of forming an LLP is low compared to the cost of incorporating a public or private limited company. The compliances to be followed by the LLP is also low. The LLP needs to file only two statements annually, i.e. Annual Return and a Statement of Accounts and Solvency.

No requirement of minimum capital contribution

The LLP can be formed without any minimum capital. There is no requirement of having a minimum paid-up capital before going for incorporation. It can be formed with any amount of capital contributed by the partners.